Retail sales weren’t overly exciting sending stocks lower at the open. Volume was hot throughout the session as institutions appeared very active in the market after yesterday’s low volume showing. The tale of the day was the buying spree that took place at the close. Just after 3:30 pm the market found support sending the NASDAQ to the highs of the session. A very bullish move for the market overall and with volume pouring it the move higher saved the market from distribution. Small caps did lag on the day, but after the Russell 2000 down more than 1.4%, close just down .5% is a victory. This uptrend remains healthy and we’ll continue to stick with it.
AAPL continued its jaunt higher and not looking back. After posting record earnings the company continues to find a bid for the stock. It makes you wonder if Steve Jobs figured out the law of big numbers before his death. All we need to know is the trend is up and our exit strategy is in place. Everything else is purely noise.
At the session lows it was hard to believe the McClellan Oscillator was flashing oversold conidtions. At the close the overbought/oversold indicator finished neutral, but it was a bit surprising to see an oversold condition flash in this uptrend. Perhaps we get a day or two, even more of a pull back here, but this market has too many bullish underpinnings to believe any pullback would be serious here.
We do have options expiry this week, which should push volume levels up a bit. However, it is more important we continue to see the price action we saw today at lows. Without much distribution and stalling it is hard to even begin to think we have seen the top here. Of course, with the Barron’s article and the move we’ll get plenty of “top callers” before this uptrend wipes them out clean. Opinions are left for the market pundits selling something on CNBC. We’ll focus on the important items price and volume.
